Effects of retailers’ corporate social responsibility on retailer equity and consumer usage intention

Abstract

This study focused on corporate social responsibility (CSR) to examine how retailers can distinguish themselves in the market and attain sustainability. It thus investigated the correlation between CSR, retailer equity, and consumer usage intention to explain the role of CSR activities. For this study, data were gathered from 357 customers who were doing business (i.e., shopping) with retailers, and they were analyzed using structural equation modeling. Results indicated that retailers’ CSR activities had a positive effect on retailer equity, which then had a significant positive effect on customer usage intention. The results further showed that consumers observe retailer equity when they experience its CSR activities, which increased their intention to shop with the retailer. The findings indicated that retailers’ CSR was an attractive factor making retailers stand out in the market, and attain sustainability, and that CSR improved both retailer equity and customer usage intention. This study has academic implications in that it finds a brand-new outcome variable of retailers’ CSR, such as retailer equity. In addition, it also has practical implications in managing and developing retailers’ CSR as an important marketing strategy.